European Equities

Potential upside despite high volatility since the beginning of the year

European equities seem to be influenced more by fund flows than fundamentals and that means they could represent investment opportunities. But high volatility makes it essential to adopt a specific approach.

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We are extremely demanding over long term company fundamentals"Isabelle CarpentierProduct Specialist – European Equities

Two solutions can help capture upside on eurozone equities in spite of prevailing volatility

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A complex macroeconomic environment

​​Equity market volatility is very high but eurozone companies are still benefiting from an upbeat environment. They are underpinned by various factors including better visibility over growth. They have also optimised cost structures after several years of restructuring and should therefore gain from any additional growth. This makes it essential to adopt an investment approach that acknowledges this volatility, whether through tactical management of market exposure or by seeking long term performance.

​Edmond de Rothschild Fund Europe Value & Yield is a conviction-driven European equity fund with an investment horizon of more than 5 years. It is currently focusing on stocks geared to the eurozone recovery and cyclicals undergoing restructuring. The fund’s strategy is to invest in companies with inherent upside and which are to a certain extent uncorrelated with market trends.

​Edmond de Rothschild Fund Europe Flexible has an investment horizon of over 3 years and combines stock picking with proactive short and medium term management of equity exposure (between 0% and 100%).The fund seeks to participate in upward momentum on European equity markets while cushioning losses in highly volatile phases.

Written on February 19 2016This page is issued for information purposes only and does not constitute a recommendation, offer or solicitation to buy or sell financial instruments or any other financial product. This document is not intended for distribution in any jurisdiction where it is not lawful to do so.

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